More Articles

The Dispatch E-Edition

All current subscribers have full access to Digital D, which includes the E-Edition and
unlimited premium content on Dispatch.com, BuckeyeXtra.com, BlueJacketsXtra.com and
DispatchPolitics.com.
Subscribe
today!

Fewer sales of flip-flops and picnic-table umbrellas during a colder-than-normal spring in much
of the nation cut into Big Lots’ profit during the first quarter.

However, the Columbus-based closeout retailer with nearly 1,600 stores in the United States and
Canada is looking to a new leader to address its merchandising problems.

The company’s new CEO and president, David Campisi, is a veteran merchandiser at companies such
as May Department Stores, Kohl’s and the Fred Meyer division of grocer Kroger.

He took on his titles officially yesterday, at a board meeting after the company’s annual
shareholders meeting.

The company also announced first-quarter earnings yesterday, with cooler-than-normal weather
hurting sales in many of its markets, said Timothy “TJ” Johnson, its chief financial officer,
during the conference call.

Company executives lowered expectations for the year based in part on the expected need to
discount warm-weather merchandise, and shares fell 9 percent in trading yesterday.

Meanwhile, the company is looking ahead after tests of selling fresh and frozen foods were
deemed encouraging, said Chuck Haubiel, an executive vice president, during the conference call.
Big Lots recently introduced milk, eggs, cheese and meat, as well as branded frozen foods,
including pizzas, dinner entrees, breakfast foods and ice cream, to test stores, Haubiel said.

“The goal of the test was to offer an expansion of food-related items in classifications of
merchandise that would position us towards becoming SNAP eligible,” he said. SNAP, the Supplemental
Nutritional Assistance Program, often called food stamps, is used by more than 47 million
Americans. “We believe this can provide higher traffic to our stores,” Haubiel said.

Yesterday’s board meeting and shareholder gathering served as a swan song for retiring CEO
Steven Fishman.

Last week, the Securities and Exchange Commission and U.S. attorney’s office concluded an
investigation into Fishman’s sale of $10 million of Big Lots shares last year, just before the
company said store sales had declined. The SEC said last week that the matter was closed and no
action was taken. His retirement was unrelated to the investigation.

At their annual meeting, shareholders rejected a company proposal to approve, on an advisory
basis, the compensation of executives, including total compensation of $12.3 million for the
retiring chief executive.

Because of the disconnect between Fishman’s compensation and his company’s sub-par financial
performance last year, proxy advisory firms Institutional Shareholder Service and Class Lewis had
recommended that shareholders reject the proposal to approve executive compensation.

A week ago, Big Lots sent a letter to shareholders explaining that the proxy advisory services
failed to consider an important fact: Fishman forfeited $10 million in restricted stock awards —
the vast majority of his compensation — because of his company’s poor 2012 performance.